Farm Energy Funding and Incentives

Elevated solar panels installed over rows of vegetable crops on a farm, demonstrating a dual-use agrivoltaic system.

Massachusetts farms can access federal, state, and utility incentives that cover substantial portions of energy upgrade costs. Most programs require an energy audit as the first step, CEE prepares audits that meet USDA NRCS and MDAR requirements.

Energy Efficiency Funding Programs

Federal Programs (USDA NRCS)

The Natural Resources Conservation Service provides financial assistance for on-farm energy efficiency and equipment upgrades through the Environmental Quality Incentives Program (EQIP). Awards are competitively ranked and can cover a substantial share of eligible costs.

CEE energy audits meet NRCS requirements for the Agricultural Energy Management Plan (AgEMP) conservation practice.

State Programs (MDAR)

Massachusetts Department of Agricultural Resources administers farm grants through the Climate Smart Agriculture Program (CSAP), including the Agricultural Energy Grant Program (ENER). The Massachusetts Farm Energy Program (MFEP), administered by the Center for EcoTechnology (CET), offers additional technical and financial assistance.

Utility Incentives (Mass Save)

Mass Save participating utility companies offer incentives for efficient equipment including lighting, controls, motors, and custom measures. These incentives can complement federal and state funding for comprehensive projects.

Renewable Energy Funding Programs

SMART 3.0 — Massachusetts Solar Incentive

Massachusetts' redesigned solar incentive program launched in October 2025 with annual capacity allocations and per-kWh incentive payments over 20 years.

Key features for farms:

  • Small systems (25 kW or less) receive a flat rate and aren't subject to capacity limits
  • Additional incentives for building-mounted and canopy installations
  • Agricultural dual-use projects (ASTGUs) up to 7.5 MW can qualify for enhanced rates
  • CEE provides required application review for ASTGU projects

→ Learn more on our Solar and Renewable Energy on Farms page

USDA REAP — Renewable Energy Grants and Loans

The Rural Energy for America Program provides grants (up to 50% of project costs) and guaranteed loans for renewable energy systems and energy efficiency improvements. Agricultural producers with at least 50% of gross income from farming may apply for projects in eligible rural areas. REAP can be combined with SMART incentives and federal tax credits for comprehensive project financing.

REAP changes often. Before planning a project around REAP, confirm current eligibility, funding levels, and deadlines on the official USDA REAP webpage and with your state USDA Rural Development office.

→ REAP Program Details (USDA)

Common Sector Improvements

Energy audits identify improvements eligible for funding across many farm types. Below are common examples, actual eligibility depends on your audit findings, site conditions, and current program criteria.

Greenhouses & Floriculture

High-efficiency heaters, thermal screens, HAF fans, glazing upgrades, envelope sealing

Maple Sugaring

Reverse osmosis equipment, steam preheaters, high-efficiency evaporators, sugarhouse improvements

Dairy Operations

Plate coolers, scroll compressors, heat recovery, LED lighting, electric alley scrapers

Cranberries & Irrigation

Electric pump conversions, VFDs, pipeline upgrades, controls and telemetry

Livestock & Poultry

LED lighting, ventilation upgrades, insulation, high-efficiency heaters

Cold Storage

Defrost controls, compressor upgrades, insulation, air sealing, LED lighting

Field Equipment

Tractor replacement, equipment electrification where eligible

General Facilities

Lighting, envelope improvements, heating upgrades, motors, VFDs, controls

NRCS may also support related improvements such as high tunnels, manure storage, watering systems, pipelines, and building envelope measures that protect product quality.

Important Notes

  • Program details including timing, caps, and cost share change periodically, contact us for current information
  • Eligibility and final recommendations depend on your energy audit, site conditions, and program rules
  • CEE helps match the right program combination to your project and timeline

Contact

Want to know which programs fit your operation? Contact us to discuss your situation and find out what funding might be available.

Griffin Pelaia
Agricultural and Energy Engineer
UMass Clean Energy Extension
(413) 421-0129 • gpelaia[at]umass[dot]edu (gpelaia[at]umass[dot]edu)